Stallion owners make €7m from stud-fee tax exemption

The Irish Exchequer reportedly lost out on around €7m in 2004 due to the controversial incentive that allows stallion owners to pay no tax on stud fees.

Reports this morning said government figures showed that the stud-farm industry declared profits of €17m on such fees in 2004.

The reports said Minister for Finance Brian Cowen had estimated that around €7m of this would have to be paid in income tax and corporation tax if the controversial stud-fee incentive were not in place.

A study commissioned in 2004 by the breeding industry reportedly estimated the loss to the Exchequer from the stud-fee exemption at €3m, less than half the figure provided by Mr Cowen.